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Topics: Ethics and Organizational Culture
Conflict of Interest
Network:294



Nowadays its common for organisations to come up with referral program for new hiring.
so in case a Senior Manager refers CV for his immediate subordinate position or vice versa, will that be categorised as conflict of interest?
In such cases how you will ensure that favouritism isn't taking place while working on a project?
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Network:1851



Conflict of Interest: it mus be evaluated accoding to organizational policies on the matter. In my case this item is part of our organizacional code of conduct. So, I can not give you an answer because it dependens on your organization. About your second question, you are making a judgmen based on your own assumptions. My recomendation, in my humble opinion, is you have to avoid this type of things.
Network:113791



Neha,

CV reference is a nice way to get people motivated, in some company I have seen the program not apply to higher management people.

In the selection process, was the senior manager assisted by some other senior managers. That would reduce potential conflict. Internal organization policies should make that clear on any serious organization. Also, serious organization have in place mechanisms to report those that were missed.

Are those policies, code of conduct real or just a smoke screen? That is another question for you to respond.
...
1 reply by NEHA CHATURVEDI
Jun 02, 2019 8:44 AM
NEHA CHATURVEDI
...
Thanks Vincent. I haven’t seen this practice in my organisation though but have heard about a few key market employers doing such hiring in presence of Talent acquisition representatives. Through this forum I want to know how we really handle such situations? Do we need to go through the company code of conduct but guess not everyone has access to hiring polices of organisation. As a PMI member how we can intervene and sort this.
Network:294



Jun 02, 2019 7:32 AM
Replying to Vincent Guerard
...
Neha,

CV reference is a nice way to get people motivated, in some company I have seen the program not apply to higher management people.

In the selection process, was the senior manager assisted by some other senior managers. That would reduce potential conflict. Internal organization policies should make that clear on any serious organization. Also, serious organization have in place mechanisms to report those that were missed.

Are those policies, code of conduct real or just a smoke screen? That is another question for you to respond.
Thanks Vincent. I haven’t seen this practice in my organisation though but have heard about a few key market employers doing such hiring in presence of Talent acquisition representatives. Through this forum I want to know how we really handle such situations? Do we need to go through the company code of conduct but guess not everyone has access to hiring polices of organisation. As a PMI member how we can intervene and sort this.
Network:1394



Code of conduct set by company rules over. Its better to revisit how your organisation "defines" and structures the referral policies and conflict of interest. If there is a violation it needs to be reported to the concerning authorities.
Network:2399



Neha, it is very common for many companies to have a referral programme so it depends on the company rules to determine what is allowed and how much allowed v/s what is not permitted and so forth, this is done in the day light openly in the company not hidden it is part of the policies.
Network:79



Neha,

You should refer the candidate anyways, just don't be a part of the selection process. Observe his/her performance during interview but don't be a part of the panel who selects him/her. That way, whatever policy your organisation has, this task won't fall under conflict of interest.
Network:23641



Agree with Sergio. Conflict of interest should be identified based on rules, codes, and regulations.
Network:863



agree with most of you concluding that it depends of the company policies. If you are in a senior position it is more common to want to work with people you already know. I would like to refer to weird things that works that if you hire people based on your same thinking maybe is not going to challenge yourself and the company.
Network:210



In addition to your organization's rules, you also should consult the PMI Code of Ethics and Professional Conduct, which, as a PMP® certified practitioner, you have agree to abide by. It provides valuable guidance. The bottom line is that the conflict needs to be disclosed, and that the person who make the recommendation needs to refrain from participating in the decision to hire.

This is from the PMI Code of Ethics and Professional Conduct:

Conflict of Interest Situations
4.3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders.
4.3.2 When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision making process or otherwise attempting to influence outcomes, unless or until: we have made full disclosure to the affected stakeholders; we have an approved mitigation plan; and we have obtained the consent of the stakeholders to proceed.

Comment: A conflict of interest occurs when we are in a position to influence decisions or other outcomes on behalf of one party when such decisions or outcomes could affect one or more other parties with which we have competing loyalties. For example, when we are acting as an employee, we have a duty of loyalty to our employer. When we are acting as a PMI volunteer, we have a duty of loyalty to the Project Management Institute. We must recognize these divergent interests and refrain from influencing decisions when we have a conflict of
interest.
Further, even if we believe that we can set aside our divided loyalties and make decisions impartially, we treat the appearance of a conflict of interest as a conflict of interest and follow the provisions described in the Code.

Favoritism and Discrimination
4.3.3 We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery.
Network:107



Hi Neha,

It’s a conflict of interest, only if the person referring and evaluating the candidate is same. There is a clear hiring / referral policy that the person who has referred will not be in the interview panel even if it means, its for his/her own department. As a PMI member or your own organization staff member, you should highlight the ethical aspect of it, and not wait for anyone else to highlight those significant changes.

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